GRAND TRAVERSE COUNTY ECONOMIC DEVELOPMENT CORPORATION

May 13, 2021 Meeting Minutes CALL TO ORDER: Chair Sullivan called the meeting to order at 8:00 AM. Chair Sullivan led the pledge of allegiance. MEMBERS PRESENT: Jessica Sullivan, Keef Morgan, Nate Alger, Dennis Arouca, Marty Colburn, Kevin Endres, Tom Kern, Kevin Klein joined at 8:11am MEMBERS ABSENT: Christie Minervini, Betsy Coffia, Others present: Lisa Emery, Chris Forsyth, Dave Mengibier, Dan Leonard, Anne Jamieson, PUBLIC COMMENT: None. APPROVAL OF AGENDA AND MINUTES: MOVED by Arouca, seconded by Howe, to approve May 13, 2021 agenda and minutes for April 8, 2021 with correction by Dennis Arouca to the April, 8, 2021. YAYS Alger, Howe, Colburn, Kern, Morgan, Sullivan, Klein, Arouca AYS ABSENT REPORTS/ACTION ITEMS:

a. Community Development Coalition, Dave Mengibier, President and CEO of Grand Traverse Community Foundation

Dave Mengibier provided a background on the Community Development Coalition of Northwest Michigan and highlighted 5 of their economic development related objectives. • increase the average wage compared to the MI average • increase the number of working families • increase the percentage of the population with a professional certification or post secondary

degree • create more IT, STEM, tech and professional jobs • maintain our region’s top 5 position among mid-sized cities nationally in the vibrancy of its arts

and culture Community. To learn more visit: nwmicommunitydevelopment.org Board members discussed other areas of concern in our community. - Marty Colburn– youth mental health, reporting of child abuse has increased over 10%, the pandemic

has created a lot of issue for our young people. - Dennis Arouca – wages are 20% less in our region than the rest of the state, housing and

transportation costs are issue. There is a bad combination of affording a house about 30 miles from work and then adding the cost of travel to work.

- Tom Kern – provided an example of a rural community that does a good job with housing, Steamboat Springs, Colorado. Jason Peasley, is the Housing Authority Director out there. Innovative housing solutions.

b. Michigan Economic Development Corporation (MEDC) Presentation, Daniel Leonard, MEDC Community Assistance Specialist

Dan Leonard MEDC, overview of the presentation, presentation attached to the minutes.

c. America Rescue Plan Discussion –

Chairperson Sullivan directed to carry the American Rescue Plan Discussion as well as the memo from Warren Call, Traverse Connect to the June meeting OTHER BUSINESS: OLD BUSINESS: SECOND PUBLIC COMMENT (Refer to Rules under Public Comment/Input above) NOTICES: CLOSED SESSION: (IF NEEDED) ADJOURNMENT: Meeting adjourned at 9:03 am

CD OVERVIEW & POST COVID-19 PRIORITIESMAY 13, 2021

COMMUNITY DEVELOPMENTMichigan Economic Development Corporation

GUIDING PRINCIPLES STRATEGIC FOCUS AREAS

MISSIONAchieve long-term economic prosperity for Michiganders by investing in communities, enabling the growth of good jobs and promoting Michigan’s strong image worldwide

VISIONMake Michigan’s economy the nation’s fastest growing, most equitable and most resilient by:

Achieving ‘Top 10’ status for: Job growth in targeted

sectors Equitable job growth Real median household

income growth

Attaining the largest net gain of talent in the Midwest.

MEDC IS COMMITTED TO ENABLING LONG-TERMECONOMIC OPPORTUNITY FOR ALL MICHIGANDERS

Regional impactEmpower and support every region –from rural areas to urban cores – in improving economic outcomes.

Sustainable, long term growthCatalyze long-term job growth. Ensure resilience of Michigan’s economy against downturns and automation potential.

Equitable, high-wage growthDrive equitable pathways toward high-wage growth by enabling industries, communities and businesses that provide opportunities for all.

Customer focusEnsure a customer (businesses, communities, entrepreneurs) and partner orientation in all we do.

REDEVELOPMENT READY COMMUNITIES®

Presenter

Presentation Notes

There are 6 best practices: Plans and public engagement Zoning Development Review Boards & Commissions Economic Development & Marketing The 6th best practice is a post certification best practice item. This will be completed in collaboration with the Redevelopment Services Team once a community reaches certification.

Presenter

Presentation Notes

*Read slide*

REDEVELOPMENT SERVICES

Baseline Community Visits

Predevelopment Assistance

Priority Site Identification &

Promotion

Design/Build Package

Developer Matchmaking

Michigan Main Street Program Levels

Start:Engaged1-3 years

Progress: Select 5 years

Maintain:Master

At least 2 years

Learn:Training Series

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Presentation Notes

This is a map of our Main Street communities through out the state receiving a variety of services from MMS Staff. MMS has staff specializing in each of the four areas of Main Street available to serve our communities.

Comprehensive Impact of Main Street

Sense of Vibrancy

ECONOMIC VITALITY DESIGN

Sense of Place

PROMOTION

Sense of Community

ORGANIZATION

Sense of Ownership

SMALL BUSINESS SERVICES

• Business Retention Tools• B Corp education & training

Technical Assistance

• Match on Main• Community Capital

Access to Capital

• MI-SBDC• National Main Street Center• Local resource providers

Partnership / Referrals

HISTORIC PRESERVATION

Designation

• Local Historic District (PA 169)Enables communities to establish local historic district ordinances to protect historic properties and incorporate preservation into community planning

• National Register of Historic PlacesProvides a tool that allows communities to recognize and honor important places and enables certain properties to access preservation incentives

Tax Credits

• 20% Federal Rehabilitation Tax Credit • Receive roughly 35 new applications

per year• Approve approximately 25 Part 3

application per year• Representing an annual average of

$138M in direct investment

• 25% State Rehabilitation Tax Credit• Not yet actively accepting projects

Certified Local Government (CLG) Program

• Federal-State-Local Partnership• Any local unit of government—county, city,

township, or village—willing to meet program requirements

• CLGs support and integrate preservation into master planning and community development processes

• CLGs are recognized as active partners in the national historic preservation program and gain special access to technical assistance, grant funding, and other benefits

AlleganAnn ArborBattle CreekBay CityBirminghamBoyne CityCalumetCanton TwpCharlevoixDetroitEast LansingEscanabaFarmington HillsFranklinGrand RapidsHolland

JacksonKalamazooLansingManisteeMasonMenomineeMonroeMount ClemensNilesNorthvilleNorthville TwpOwossoRochester HillsSalineWashtenaw CoYpsilanti

MEDC COMMUNITY DEVELOPMENT FUNDING

PRIORITIES

COMMUNITY DEVELOPMENT GOALSLocal & Regional Impact• Project supports the vision and goals stated in the local master plan, downtown plan, capital improvements plan

and/or economic development strategy.

• Community financially supports the project as demonstration that the project is a priority.

• Project strengthens connections to local/regional workforce and career opportunities to the community, region and/or state’s overall workforce and opportunities particularly in support of the growth and development of the MEDC’s strategic focus industries.

• Located in a Geographically Disadvantaged Area • Project is coordinated with or supports other state investments in the community.• Readiness of infrastructure – utilities, housing, transportation, public transit and other community

services. Is project filling available capacity or creating need for new community or state investments in infrastructure/resources?

• Emerging developers who seek to generate community development projects that serve as a catalyst for community impact, specifically in geographically disadvantaged areas.

• The community has a documented public participation strategy for engaging a diverse set of community stakeholders.

COMMUNITY DEVELOPMENT GOALS

COMMUNITY DEVELOPMENT GOALS

Place Considerations• Evaluated in concert with the basic tenets of urban design; has mass, density, building type(s), and scale

appropriate to the neighborhood context and positively contributes to the pedestrian experience.

• Contributes to a traditionally dense mixed-use area and contains multi-story elements.

• Promotes mixed-income neighborhoods.

• Incorporate integrated and sustainable approaches to manage the quantity and the quality of stormwater for infrastructure improvements.

• Universal design (designed to be accessed, understood and used to the greatest extent possible by all people).

• Redevelopment meets a third-party certification for green buildings (Leadership in Energy and Environmental Design [LEED], Energy Star, Living Building Challenge, Net Zero Energy Building, Green Globes, etc.)

• Availability of public transportation or other transportation programs to improve job access, or proximity/accessibility for workforce.

• Addresses improvement to non-motorized transportation.

DRAFT COMMUNITY DEVELOPMENT GOALSEconomic & Financial Considerations

- Senior Financing: maximize all available senior financing with preference through a federally insured and regulated senior lender.

- Debt Service Coverage Ratio: ensure that the projected cash flow after MCRP incentive is applied is adequate to service debt.

- Financial need for the incentive(s) is demonstrated.

- All other potential funding resources have been explored and maximized.

- Demonstrated financial commitment towards the project by developer/owner equity contribution (generally 10–20% of total development cost) and deferred developer fees. Flexibility on these contributions will be given to emerging developers.

- Developer and non-third-party fees (including management, guarantee, and project coordination fees, etc.) should be deferred through available cash flow as a general rule.

COMMUNITY DEVELOPMENT GOALS

FUNDING PROGRAMS

DRAFT COMMUNITY DEVELOPMENT GOALS

• Eligible Project: property or building that is contaminated, functionally obsolete, blighted, historic resource

• Adjacent and contiguous properties• MEDC administers non-environmental activities• EGLE administers environmental activities• Industrial, commercial, residential, etc.• Eligible Non-Environmental Activities:

• Brownfield & Act 381 Work Plan preparation• Interest (case-by-case basis)• Demolition• Lead & asbestos study, abatement• Site preparation & infrastructure (CORE

communities only)

BROWNFIELD TAX INCREMENT FINANCING

DRAFT COMMUNITY DEVELOPMENT GOALS

State Gap Financing for Private Redevelopment Projects

• Competitive. Need-based. Performance-based.

• Annual appropriation from Legislature• Grants, direct loans, loan participation, equity

investments• Grants up to $1.5M per statute (limited to

$750k per parameters). $10M into any single project.

Property Eligibility: contaminated, blighted, functionally obsolete, historic resource

Eligible Investment: demolition/site improvements, rehabilitation, new construction, architectural/engineering, M&E, Furniture/fixtures

COMMUNITY REVITALIZATION PROGRAM (CRP)

DRAFT COMMUNITY DEVELOPMENT GOALS

• US Department of Housing and Urban Development (HUD) allocates CDBG funding to the State, funds flow from MEDC to local municipality

• Eligible Projects must meet at National Objective and must have an Eligible Activity

• National Objectives: • Benefit persons of Low to Moderate Income: Job creation, Area benefit, Housing• Prevention or Elimination of Slum or Blight: Spot, Area wide, Historic preservation• Urgent Need

• Specific requirements related to prevailing wages, bidding, contracting • Work closely with your CATeam and CDBG program specialist to ensure compliance

• Currently funded incentives: rental rehab, water related infrastructure (WRI)

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

REACH OUT TO YOUR COMMUNITY ASSISTANCE TEAM SPECIALIST AS EARLY AS POSSIBLE!

DRAFT COMMUNITY DEVELOPMENT GOALSPublic Spaces Community Places (PSCP)

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Presentation Notes

Note: project profiles right on home page!!!!! One-pagers, resources on other programs, etc.